You can still find small-cap superstars
Small-cap superstars still abound

There are some picks in this sector that have excellent valuations and strong earnings growth.

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Even amid restrained consumer spending, the retailer has shown revenue growth as it expands product lines.

By Benzinga Jan 24, 2012 7:14PM

Image: Credit card (© Burke/Triolo Productions/BrandX/Getty Images)By Jay Wong, Benzinga Staff Writer


Coach (COH) announced a positive earnings report Tuesday, with second-quarter profit of $1.18 a share beating analyst estimates of $1.15. The company also reported sales of $1.45 billion, surpassing estimates of $1.43 billion.


The company has shown strong revenue growth since emerging from the recession, as it has expanded product lines with more affordable accessories and a larger men's collection. In its earnings call, the company stated that the men's business is on track to double sales this year.

 

Don't blindly accept market multiples as evidence of value.

By Motley Fool Pick of the Day Jan 24, 2012 6:18PM

By Dan Caplinger

 

The first thing most investors learn about valuation is that a low P/E ratio means that a stock is cheap. But the next thing they learn is that buying a stock based on the P/E alone is fraught with potential disaster -- and if you don't understand what's behind both a stock's price and its most recent earnings, you're liable to make huge mistakes picking stocks.

 

Nothing beats a cheap investment
Recently, a report from Bespoke Investment Group said that stocks are cheaper than they've been since at least 1990. The report looked at a number of valuation measures, including ratios of price to earnings and price to book value, as well as dividend yields. In particular, the report pointed to several facts:

 

The company beats expectations on revenue and profit.

By Kim Peterson Jan 24, 2012 6:04PM
Updated at 9:40 a.m. ET Wednesday

Apple
(AAPL) is back to its pattern of blowing away analyst estimates.

The company beat Wall Street expectations Tuesday for the December quarter, reporting record profit of $13.06 billion, or $13.87 a share, up from a profit of $6 billion, or $6.43 a share, a year earlier. Revenue was a record $46.33 billion, up from $26.74 billion a year earlier.

Analysts had expected $10.14 a share in profit on revenue of $39.1 billion for the quarter ended Dec. 31. Shares were up about 6% Wednesday.  
Tags: AAPLVZ

The stock is extremely volatile. And while that's not unexpected, it is a reason to sell into the current rally.

By Jim J. Jubak Jan 24, 2012 4:22PM
On Dec. 9, Titan International (TWI) told Wall Street to expect 2011 sales of around $1.4 billion (slightly below the Wall Street consensus of $1.48 billion) and 2012 sales of $1.7 billion to $1.9 billion (consensus stood at $1.82 billion).

Nothing wrong with those numbers -- or with Wall Street’s estimates of a whopping 194% increase in earnings for 2011 from 2010 or with the 59% earnings growth rate projected for 2012.
 
Tags: CATTWI

Which companies got praised or panned the most following their earnings reports?

By Kim Peterson Jan 24, 2012 3:47PM
Image: Woman with computer (© Don Mason/Blend Images/Corbis)Earnings season is in full swing, and already we're seeing some stocks emerge with a nice share price boost while others get hammered.

Apple (AAPL) will give one of the most highly anticipated reports of the quarter after the close Tuesday. Expect some buzz after Yahoo (YHOO) reports later Tuesday as well.

Bespoke Investment Group has a nice roundup of the best-performing and worst-performing stocks so far this earnings season. These are the stocks that saw the biggest gains or losses in the day following the earnings report. 

While the fourth-quarter results are encouraging, it may be too soon to say that banks are set to soar this year.

By The Fiscal Times Jan 24, 2012 2:57PM
bank earningsBy Suzanne McGee, The Fiscal Times

Wall Street analysts like Barclays Capital's Jason Goldberg went into the new year predicting that bank earnings would jump.

Now that biggest in the business have reported their earnings for the fourth quarter of 2011, the numbers suggest there's at least some hope of that happening.  

However you slice it, J&J's prospect of earnings growth looks bleak as economic and competitive 'headwinds' continue.

By MSN Money Partner Jan 24, 2012 2:57PM

Minyanville on MSN MoneyBy Brett Chase

 

Johnson & Johnson (JNJ) followed Eli Lilly (LLY) Tuesday as the latest big drug maker to announce a lower-than-expected earnings forecast for this year.

 

The company said it expects earnings per share of $5.05 to $5.15 excluding costs of a major acquisition.

 

A long-standing holding of Berkshire Hathaway, the bank is outperforming its bigger rivals.

By TheStockAdvisors Jan 24, 2012 2:35PM
Image: Piggy bank (© Photos.com/Jupiterimages)By Geoffrey Seiler, BullMarket.com

Wells Fargo (WFC) reported its fourth-quarter results last week and the Warren Buffett favorite beat its big bank rivals. Overall, this was a solid quarter for the San Francisco bank, and we understand why Buffett likes it.

It reported a 20% increase in net income that matched the expectations of Wall Street and generated more revenue than was expected, aided by strength in its mortgage business. 

Lengthy court battles over 'slide-to-unlock' technology could slow Android's market share gains.

By Trefis Jan 24, 2012 2:34PM

After Samsung's infringement claim against Apple (AAPL) was rejected by a German court, Apple is now focused on Google's (GOOG) latest Galaxy Nexus smartphone, claiming that it infringes on Apple's "slide-to-unlock" technology.

 

After the bans and licensing on the Galaxy S-II in 2011, this year could be full of legal sparring and pose similar problems for Google's homegrown phone.

 
Tags: AAPLGOOG

The market constantly misreads earnings from these companies, and you can profit as a result.

By Jim Cramer Jan 24, 2012 2:24PM

By Jim Cramer, TheStreetTheStreet


There's something very humdrum about the predictability and reaction to earnings this time around. But we will still attempt to shoehorn everything through the eyes of the stocks, not the companies.


Here are some time-honored patterns:

 

The 'Dim Sum' market, which is open to Western investors, can provide exposure to China with lower levels of risk.

By Zacks.com Jan 24, 2012 2:15PM

Image: China (© Brand X/SuperStock)By Eric Dutram
   

Although the Chinese economy is apparently slowing down -- to a rate of 'just' 8.9% in the most recent release -- some investors remain relatively bullish.


These investors point to the country's massive reserves and still small consumer economy as two areas which, if unlocked, should help the country avoid a hard landing in the near term.

 

As the fast-food giant looks to expand internationally, its supply chain will become more difficult to manage.

By Trefis Jan 24, 2012 1:29PM
Image: Hamburger (© BananaStock/Jupiterimages) McDonald's (MCD) had a stellar 2011, with its stock gaining more than 30%. We think the company's current price, however, is more reflective of its long-term, intrinsic value.

In fact, the sound fundamentals of the company might have fueled unreal optimism and overheated the stock. Skeptics who thought the company would struggle during a recession were proved wrong as McDonald's and several other restaurant stocks, including Yum! Brands (YUM), Starbucks (SBUX) and Chipotle Mexican Grill (CMG), all significantly outperformed the broader indices.  

Once out of favor, homebuilder stocks have been on a torrid run. But seasonal weakness and extreme bullishness are likely to produce a correction.

By MoneyShow.com Jan 24, 2012 12:58PM

Image: Home under construction (© Corbis)By Tom Aspray, MoneyShow.com


In the first few weeks of 2012, there have been a large number of articles and headlines discussing homebuilding stocks. The positive news on housing so far in 2012 has turned even more analysts and investors bullish on this sector. Does that mean you should be buying now?


Clearly, sector selection was the key in 2011, and it should also be a key factor in your stock choices for 2012. From a technical standpoint, the homebuilders have had an impressive run since their volume surge in mid-October.

 
Tags: KBHLENXHB

It's too little, too early to get worked up about the new offerings from the world's biggest coffee chain.

By InvestorPlace Jan 24, 2012 12:32PM
Image: Beer (© Corbis)By James Brumley

With 18,000 stores tapping out as much coffee as reasonably possible, Starbucks (SBUX) has decided to grow its top line -- at least for some of its stores -- by widening its menu in a major way. Soon, at a couple dozen locations in Atlanta and Southern California, Starbucks will offer coffee, scones -- and brewskis?


Yes, the world's biggest chain of coffeehouses has tiptoed further into the world of beer and wine (the company has already been testing alcohol sales in the Pacific Northwest), looking to get more round-the-clock revenue flowing from its admittedly enviable real estate.

 

Zynga is initiated with 'outperform,' and Deutsche Banks is downgraded to 'neutral.'

By MSN Money Partner Jan 24, 2012 11:58AM
Information provided by Theflyonthewall.com

Tuesday's noteworthy upgrades include:
  • Bed Bath & Beyond (BBBY) upgraded to Buy from Hold at Deutsche Bank
  • KLA-Tencor (KLAC) upgraded to Buy from Neutral at Citigroup
  • Harmony Gold (HMY) upgraded to Buy from Neutral at UBS
  • Western Digital (WDC) upgraded to Buy from Hold at Needham
  • Electronic Arts (EA) upgraded to Buy from Hold at Hudson Square
 

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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.

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